KKR and Singtel to take full ownership of data center firm STT GDC for about $5 billion

Non-public fairness firm KKR and Singapore Telecommunications will purchase the remaining 82% stake in data center operator ST Telemedia World Data Centres for 6.6 billion Singapore {dollars} ($5.1 billion), KKR stated in an announcement on Wednesday.

The deal pegs STT GDC’s enterprise worth at S$13.8 billion and comes at a time when there was a soar in data center demand led by the increase in synthetic intelligence.

Following completion, KKR will maintain a 75% stake in STT GDC, whereas Singtel will personal the remaining 25%, taking into consideration the conversion of present desire shares held by each buyers.

KKR stated the deal represents its largest infrastructure funding in Asia Pacific to date, as international funding in data facilities accelerates on rising want for cloud computing and synthetic intelligence workloads.

Singtel shares rose nearly 2% to hit a document excessive earlier than paring features, and had been final buying and selling 0.41% larger. KKR shares, which misplaced practically 10% on Tuesday, gained 0.5% in after hours buying and selling.

World data facilities’ dealmaking hit a recent document final 12 months, pushed by a rush to construct out the infrastructure required for energy-intensive AI workloads, with S&P World reporting that over $61 billion had flowed into the data center market, up from $60.8 billion final 12 months.

“Digital infrastructure stays one of probably the most compelling long-term funding themes globally,” stated David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure, citing STT GDC’s diversified footprint and growth pipeline.

Citi acted because the lead monetary advisor to KKR and Singtel in what marks the most important M&A deal in Singapore within the final 4 years, data from financial institution confirmed.

Based in 2014 and headquartered in Singapore, STT GDC operates data facilities throughout 12 markets in Asia Pacific, the UK and Europe, with 2.3 gigawatts of design capability. The corporate supplies colocation, connectivity and assist providers to hyperscalers and enterprise prospects.

KKR and Singtel first invested in ST Telemedia World Data Centres in June 2024, placing in $1.75 billion Singapore {dollars} for a minority stake.

“STT GDC’s various geographical footprint will increase our publicity to new markets and makes the Singtel Group a stronger data centre participant with international attain,” stated Arthur Lang, group chief monetary officer at Singtel.